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General risk factors in the business field where the company and its portfolio companies operate

Risk related to the change of the legal status of the Company

On obtaining the Licence issued by the Bank of Lithuania on 14 July 2016, the Company’s operations became subject not only to the Law on Companies, the Law on Securities and other related legal acts as it was prior to obtaining the Licence, but also to the Law on Collective Investment Undertakings and other related legal acts, which establish certain specific obligations for protection of the interest of the Company’s shareholders and certain operating restrictions, e.g. the Company is may invest the funds it manages in keeping with the requirements of the Company’s investment strategy and certain limitations in applicable laws are applied to the Company with regard to its investments, their diversification, management thereof, etc. Furthermore, the Company’s operating expenses might increase due to requirements that it periodically asset the value of assets, safeguard its assets at a Depository and so on. It should also be noted that investments in the shares of the Company (with the Licence) involve higher-than-average long-term risk. The Company cannot guarantee that shareholders will recover money that is invested. Note also that redemption of the Company’s shares is restricted, i.e., shareholders cannot demand that the Company or the Management Company redeem their shares. But shareholders are able to sell the shares of the Company on the secondary market.

Risk of changes in the technologies market

The information technology business of and the market related to information technologies change quite rapidly. Thus there is a risk that due to unforeseen changes in the market, the value of the Company’s investments or the return from the Company’s investment objects may decrease, development of businesses acquired by the Company may take longer and/or cost more than planned, and therefore the Company’s investments may not be profitable and/or their value may decrease.

The recent global sovereign debt crisis could result in higher borrowing costs and more limited availability of credit

Due to on-going recession and financial disturbance in Europe, the availability of capital may be limited and therefore the cost of borrowing may increase. A poor economic situation in Greece, Spain, Cyprus and some other EU member states might further negatively affect the commercial situation of many banks operating in Europe. In addition, the risk of lower consumer confidence may have an adverse impact on financial markets and economic conditions in the EU and throughout the world and, in turn, the market’s anticipation or reflection of these impacts could have a material adverse effect on the business of the Company and/or its Portfolio Companies in a variety of ways: – it may be difficult or impossible to raise funds for further group acquisitions and/or for covering current loans or other financial obligations;

– the group’s risk of financial difficulties due to the existing economic situation may increase.

Risk of inflation and deflation

There is risk that in case of inflation the value of a share may grow slower than inflation, which would result in a rate of return lower than inflation. In such a case, the real return from an increase in value of the shares to persons who sell shares of the Company in the market may be smaller than expected. In case of deflation, there would be a risk that the value of the Company’s investments may decrease due to a drop in the general price level.

Geopolitical risk

There is risk that geopolitical changes may have an effect on activities of the Company and for that reason the investment value of the Company may decrease or it may be impossible to sell the Company’s investments at the desired time for the desired price.